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Groupe PSA is taking a strong position in the Chinese market as the French carmaker has followed up its investment in Jian Xin (JX) earlier in the year with its recent acquisition of shares in UAP AUTO UNION (UAP), a Chinese automotive spare parts distributor.
The ultimate ambition is to establish a strong position in the Independent AfterMarket (IAM) in China, through its own distributors JX and UAP, its joint venture DPCA as well as commercial agreements like with YouErKuai in Guangzhou.
Created 27 years ago, UAP is the leading spare parts distributor in the Shandong region of China, with an optimised geographical coverage of more than 100 hubs, and is expanding its delivery service to surrounding provinces with 50 hubs.
With the help of UAP, Groupe PSA hopes to have access to a competitive and efficient distribution meeting the highest market standards. The objective is to accelerate growth in sales of multi-brand parts, particularly with the new Eurorepar range, which Groupe PSA is developing for the Chinese market.
The second pillar of the Groupe PSA aftermarket multi-brand strategy, after parts distribution, is to become a global leader in multi-brand repair services with its own brand Euro Repar Car Service. This repair network already amounts to more than 350 garages in China. UAP will strongly contribute to this expansion, through its existing customer base. Groupe PSA has the ambition to reach 4,000 Euro Repar Car Service garages in 2023 in China, and 10,000 worldwide.
Speaking on the development, Senior Vice President, PSA Aftermarket, Christophe Musy, said, “Our multi-brand aftermarket strategy, one of the pillars of the Push to Pass strategic plan, aims to meet the needs of all after-sales customers around the world, regardless of their purchasing power and the make or age of their vehicle,” adding , “China will soon be the world’s biggest after-sales market, and we have set ourselves very high ambitions there, which is why we’re already securing strong market positions.”
